Debra L. Nelson_ James Campbell Quick - ORGB_ Organisational Behaviour Text Book PDF

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 ...

Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203  Rawpixel Ltd/Alamy Stock Photo Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. 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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  ORGB6 © Cengage Learning, Inc. Debra L. Nelson, Oklahoma State University and James Campbell Quick, Unless otherwise noted, all content is © Cengage. University of Texas, Arlington ALL RIGHTS RESERVED. No part of this work covered by the copyright herein Senior Vice President, Higher Education Product may be reproduced or distributed in any form or by any means, except as Management: Erin Joyner permitted by U.S. copyright law, without the prior written permission of the copyright owner. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. NELSON / QUICK ORGB PART 1 INTRODUCTION 6 BRIEF CONTENTS 1 Organizational Behavior and Opportunity 2 2 Challenges for Managers 16 PART 2 INDIVIDUAL PROCESSES AND BEHAVIOR 3 Personality, Perception, and Attribution 34 4 Attitudes, Emotions, and Ethics 52 5 Motivation at Work 70 6 Learning and Performance Management 86 7 Stress and Well-Being at Work 104 PART 3 INTERPERSONAL PROCESSES AND BEHAVIOR 8 Communication 124 9 Work Teams and Groups 142 10 Decision Making by Individuals and Groups 160 11 Power and Political Behavior 180 12 Leadership and Followership 198 13 Conflict and Negotiation 218 PART 4 ORGANIZATIONAL PROCESSES AND STRUCTURE 14 Jobs and the Design of Work 236 15 Organizational Design and Structure 252 16 Organizational Culture 272 17 Career Management 290 18 Managing Change 310 Endnotes 329 Index 363 Rawpixel Ltd/Alamy Stock Photo iii Copyright 2020 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  CONTENTS Part 1 Part 2 INTRODUCTION INDIVIDUAL PROCESSES AND BEHAVIOR Dimitri Otis/Getty Images Gandee Vasan/Getty Images 1 Organizational Behavior and Opportunity 2 3 Personality, Perception, and Attribution 34 1-1 Human Behavior in Organizations 2 3-1 Individual Differences and Organizational 1-2 Behavior in Times of Change 5 Behavior 34 1-3 The Organizational Context 6 3-2 Personality and Organizations 36 1-4 The Formal and Informal Organization 7 3-3 Application of Personality Theory in Organizations 40 1-5 Diversity of Organizations 9 3-4 Social Perception 45 1-6 Change Creates Opportunities 9 3-5 Barriers to Social Perception 47 1-7 Learning about Organizational Behavior 13 3-6 Attribution in Organizations 50 2 Challenges for Managers 16 4 Attitudes, Emotions, 2-1 Competing in the Global Economy 16 and Ethics 52 2-2 Cultural Differences and Work-Related Attitudes 21 4-1 Attitudes 52 2-3 The Diverse Workforce 22 4-2 Attitude Formation 54 2-4 Ethics, Character, and Personal Integrity 28 4-3 Job Satisfaction 56 2-5 Ethical Dilemmas Facing the Modern Organization 29 4-4 Organizational Citizenship versus Counterproductive Work Behavior 57 4-5 Persuasion and Attitude Change 59 4-6 Emotions and Moods at Work 61 4-7 Ethical Behavior 63 4-8 Factors That Affect Ethical Behavior 65 iv CONTENTS Copyright 2020 Cengage Learning. 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Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  5 Motivation at Work 70 Part 3 5-1 Motivation and Work Behavior 70 5-2 Maslow’s Need Hierarchy 73 INTERPERSONAL 5-3 McClelland’s Need Theory 5-4 Herzberg’s Two-Factor Theory 75 77 PROCESSES AND 5-5 Two New Ideas in Motivation 78 BEHAVIOR 5-6 Social Exchange and Equity Theory 79 Klaus Vedfelt / Taxi/Getty Images 5-7 Expectancy Theory of Motivation 82 5-8 Cultural Differences in Motivation 84 6 Learning and Performance Management 86 6-1 Behavioral Models of Learning in Organizations 86 8 Communication 6-2 Social and Cognitive Theories of Learning 91 6-3 Goal Setting at Work 92 124 6-4 Performance: A Key Construct 94 8-1 Interpersonal Communication 124 6-5 Performance Feedback 96 8-2 Communication Skills for Effective Managers 129 6-6 Rewarding Performance 98 8-3 Barriers and Gateways to Communication 130 6-7 Correcting Poor Performance 99 8-4 Civility and Incivility 132 7 Stress 8-5 Nonverbal Communication 134 and Well-Being 8-6 Positive, Healthy Communication 137 at Work 104 8-7 Communicating through New Technologies and Social Media 138 7-1 What Is Stress? 104 9 Work Teams and Groups 7-2 Four Approaches to Stress 105 7-3 The Stress Response 107 142 7-4 Sources of Work Stress 107 9-1 Groups and Work Teams 142 7-5 The Consequences of Stress 111 9-2 Why Work Teams? 143 7-6 Individual Differences in the Stress–Strain 9-3 Group Behavior 145 Relationship 114 9-4 Group Formation and Development 146 7-7 Preventive Stress Management 116 9-5 Task and Maintenance Functions 150 9-6 Factors That Influence Group Effectiveness 151 9-7 Empowerment and Self-Managed Teams 154 9-8 Upper Echelons: Teams at the Top 156 CONTENTS v Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  10 Decision Making by Individuals and Groups 160 Part 4 10-1 The Decision-Making Process 160 ORGANIZATIONAL 10-2 Models and Limits of Decision Making 10-3 Individual Influences on Decision Making 162 165 PROCESSES AND 10-4 The Group Decision-Making Process 170 STRUCTURE 10-5 Diversity and Culture in Decision Making 175 10-6 Participation in Decision Making 176 Henrik Sorensen/Riser/Getty Images 11 Power and Political Behavior 180 11-1 The Concept of Power 180 11-2 Forms and Sources of Power in Organizations 181 14 Jobs 11-3 Using Power Ethically 184 11-4 Symbols of Power 186 and the Design 11-5 Political Behavior in Organizations 188 of Work 236 11-6 Managing Political Behavior in Organizations 192 14-1 Work in Organizations 236 12 Leadership 14-2 Traditional Approaches to Job Design 239 and 14-3 Alternative Approaches to Job Design 244 Followership 198 14-4 Contemporary Issues in the Design of Work 248 15 Organizational 12-1 Leader­ship versus Management 199 12-2 Early Trait Theories 200 Design 12-3 Behavioral Theories 201 and Structure 252 12-4 Contingency Theories 204 15-1 Key Organizational Design Processes 253 12-5 Recent Leadership Theories 210 15-2 Basic Design Dimensions 258 12-6 Emerging Issues in Leadership 212 15-3 Five Structural Configurations 259 12-7 Followership 214 15-4 Contextual Variables 261 12-8 Guidelines for Leadership 215 15-5 Forces Reshaping Organizations 267 15-6 Emerging Organizational Structures 269 13 Conflict and Negotiation 218 15-7 Factors That Can Adversely Affect Structure 270 13-1 The Nature of Conflicts in Organizations 13-2 Causes of Conflict in Organizations 221 218 16 Organizational Culture 272 13-3 Forms of Group Conflict in Organizations 224 16-1 Levels of Organizational Culture 272 13-4 Individual Conflict in Organizations 225 16-2 Functions of Organizational Culture 277 13-5 Conflict Management Strategies and 16-3 The Relationship of Culture to Performance 278 Techniques 229 16-4 The Leader’s Role in Shaping and Reinforcing 13-6 Conflict Management Styles 232 Culture 279 vi CONTENTS Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. 16-5 Organizational Socialization 281 16-6 Assessing Organizational Culture 283 18 Managing Change 310 16-7 Changing Organizational Culture 284 18-1 Forces for Change in Organizations 310 16-8 Challenges to Developing a Positive, Cohesive 18-2 The Scope of Change 315 Culture 286 18-3 Resistance to Change 316 17 Career Management 18-4 Lewin’s Model for Managing Change 318 290 18-5 Determining the Need for Organization Development Interventions 320 17-1 Occupational and Organizational Choice Decisions 291 18.6 Group-Focused Techniques for OD Intervention 321 17-2 Foundations for a Successful Career 296 18-7 Individual-Focused Techniques for OD Intervention 323 17-3 The Career Stage Model 297 17-4 The Establishment Stage 298 17-5 The Advancement Stage 299 Endnotes 329 17-6 The Maintenance Stage 305 Index 363 17-7 The Withdrawal Stage 306 17-8 Career Anchors 308 CONTENTS vii Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  PART 1 1 Organizational Behavior and Opportunity LEARNING OBJECTIVES 1-1 Define organizational behavior. 1-2 Identify four action steps for responding positively in times of change. Dimitri Otis/DigitalVision/Getty Images 1-3 Identify the important system components of an organization. 1-4 Describe the formal and informal elements of an organization. 1-5 Identify factors that contribute to the diversity of organizations in the economy. 1-6 Describe the opportunities that change creates for organizational behavior. 1-7 Demonstrate the value of objective knowledge and skill development in the study of organizational behavior. After finishing this chapter go to PAGE 15 for STUDY TOOLS 1-1 HUMAN BEHAVIOR IN ORGANIZATIONS Human behavior in organizations is complex and often difficult to understand. Organizations have been described as clockworks in which human behavior is logical and rational, but they often seem like snake pits to those who work in them.1 The clockwork metaphor reflects an orderly, idealized view of organizational behavior devoid of conflict or dilemma because all the working parts (the people) mesh smoothly. The snake pit metaphor, on the other hand, conveys the daily conflict, distress, and struggle in organizations. Each metaphor reflects reality from a different perspective—the organi­zation’s versus the individual’s. The snake pit metaphor expresses the dark side of human behavior, which is seen at its extreme in cases of road rage and workplace violence. Workplace incivility has become commonplace in many organizations, 2 PART ONE: Introduction Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. with an estimated 50 percent of workers saying that they experience uncivil behavior weekly. Incivility has negative affective, cognitive, and behavioral consequences for instigators, targets, and witnesses of such negative behaviors.2 In contrast, the clockwork metaphor expresses the view of organizations as healthy and productive systems in which individuals have a clear sense of the shared vision and values, are personally invested in outcomes, feel that their contributions are significant, and receive support and respect from the organization’s leadership.3 This chapter serves as an introduction to the complex subject of organizational behavior. The first section provides an overview of human behavior in organiza- Organizations have been tions, its interdisciplinary origins, and its responses to described as clockworks, but change. The second section presents an organizational context within which behavior occurs. The third section they often seem like snake pits. CHAPTER 1: Organizational Behavior and Opportunity 3 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  highlights the opportunities that exist The external perspective, on the in times of change and challenge other hand, focuses on factors outside for people at work.4 The fourth section the person to understand behavior, that addresses the ways people learn about is, external events, consequences, organizational behavior and explains and environmental forces. This per- how the text’s pedagogical features spective excludes consideration of a relate to the various learning person’s history, feelings, thoughts, styles. The final section presents the and personal value system in inter- plan for the book. preting actions and behavior. Thus, We can define organizational it has given rise to an alternative behavior as the study of individual set of motivational and leader- behavior and group dynamics in ship theories, which are covered in organizations. The study of organi- Chapters 5 and 12. The internal and zational behavior is primarily concerned external perspectives offer alterna- with the psychosocial, interpersonal, and tive explanations for human be­ havior. behavioral dynamics in organizations. For example, the   internal per­ spective However, organizational variables that Cristalov/Shutterstock.com might  say Mary is an outstanding employee affect human behavior at work are also rele- because she has a high need for achievement, vant to the study of organizational behavior. These whereas the external perspective might say it is because organizational variables include jobs, the design of work, she is extremely well paid for her work. Kurt Lewin communication, performance appraisal, organizational combined both perspectives with his claim that behavior design, and organizational structure. is a function of both the person and the environment.5 1-1a Understanding Human Behavior The vast majority of theories and models of human 1-1b Interdisciplinary Influences behavior fall into two basic categories: that of an inter- Organizational behavior is a blended discipline that nal perspective and that of an external perspective. The has grown out of contributions from numerous earlier internal perspective looks at workers’ minds to under- fields of study. The sciences of psychology, sociology, stand their behavior. It is psychodynamically oriented, engineering, anthropology, management, and medicine and its proponents understand human behavior in have all contributed to our understanding of human terms of the thoughts, feelings, past experiences, behavior in organizations. and needs of the individual. The internal perspective Psychology, the science of human behavior, was explains people’s actions developed during the closing decades of the nineteenth and behavior in terms of century. Psychology traces its origins to philosophy and opportunities Favorable their histories and per- the science of physiology. One of the most prominent times or chances for progress and sonal value systems. The early psychologists, William James, held a degree in advancement. idea of this perspective medicine (MD). Since its beginnings, psychology has change The transformation or is that internal processes branched into a number of specialized fields, includ- modification of an organization of thinking, feeling, per- ing clinical, experimental, military, organizational, and/or its stakeholders. ceiving, and judging lead and social psychology. Organizational psychology fre- challenge The call to people to act in specific quently overlaps with organizational behavior; for competition, contest, or battle. ways; therefore, people are instance, both investigate work motivation.6 Johnson & best understood from the Johnson, Valero Energy, and Chaparral Steel all used organizational behavior The study of inside, and their behavior longstanding psychological research to develop their individual behavior and group is best interpreted along- sophisticated personnel selection methods.7 dynamics in organizations. side their thoughts and Sociology, the science of society, has contrib- psychology The science of feelings. The internal per- uted greatly to our knowledge of group and intergroup human behavior. spective has given rise to a dynamics. Because sociology takes society rather than sociology The science of society. wide range of motivational the individual as its point of departure, sociologists and leadership theories. focus on the variety of roles within a society or culture, 4 PART ONE: Introduction Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. the norms and standards of behavior in groups, and the Johnson & Johnson’s “Live for Life Program.” Moreover, consequences of compliant and deviant behavior. Indi- ergonomics has gained increasing attention as a way to viduals have a role set that is determined by their social prevent medical problems resulting from poor design of position, and roles affect how people interact within orga- workstations, resulting in the loss of billions of dollars from nizations. The Professional Role Behaviors Survey, for higher healthcare costs and lower worker productivity.17 example, studied how the roles of various medical prac- Such costs can be cut nearly in half by implementing the titioners changed during hospital restructuring and these results of medical research into better workplace design.18 changes influenced organizational behavior and culture.8 Engineering is the applied science of energy and matter. It enhances our understanding of the design of work. Frederick Taylor took basic engineering ideas 1-2 BEHAVIOR IN TIMES OF CHANGE and applied them to human behavior at work, influenc- Early research of individuals and organizations in the midst ing the early study of organizational behavior.9 With his of environmental change found that people often experi- engineering background, Taylor placed special emphasis ence change as a threat and respond by relying on well- on human productivity and efficiency in work behavior. learned and dominant forms of behavior.19 That is, people Job preparation and performance shifted from a long often become rigid and reactive in the midst of change, apprenticeship and a creative, problem-solving approach rather than open and responsive. This behavior works well to work to training in and automated performance of in the face of gradual, incremental change. However, rigid simplified tasks. A study published in 1990 showed that and well-learned behavior may be a ­counterproductive Taylor’s notions of performance standards and differen- response to significant change, such as outsourcing. tial piece-rate systems were still shaping organizational Prompted by dramatic advances in Internet and net- goal-setting programs at Black & Decker, IBM, and working technology, outsourcing has been unavoidable in Weyerhaeuser at that time.10 much of American industry.20 Yet factors such as employee Anthropology, the science of human learned attrition and the potential for data loss have caused many behavior, is especially important to our understanding of companies to modify their outsourcing strategies to keep organizational culture. In fact, anthropological research both talent and information within the organization.21 Big has been used to examine the effects of efficient organi- changes disrupt people’s habitual behavior and force them zational cultures on organizational performance11 and the to learn new skills, often creating discomfort and discon- ways pathological personalities may lead to dysfunctional tent. To such employees, Eric Brown, CEO of PlusFac- organizational cultures.12 In one case study, Schwartz used tor recommends looking for the positive opportunities in a psychodynamic, anthropological mode of inquiry to change and viewing challenge as a good rather than bad explore corporate decay at General Motors and NASA.13 experience. His action steps for adapting to change are to Management, originally called administrative sci- (1) have a positive attitude, (2) ask questions, (3) listen to ence, is the study of overseeing activities and supervising the answers, and (4) be committed to success.22 people in organizations. It includes the design, imple- Success is never guaranteed, however, and change mentation, and management of various administrative sometimes results in failure. Some of the world’s and organizational systems. March and Simon take the greatest leaders, such as Winston Churchill, experi- human organization as their point of departure to investi- enced dramatic failures before they achieved lasting suc- gate administrative practices that enhance the effective- cess. It was their capacity ness of the system.14 Management is the first discipline to learn from the failure engineering The applied to take the modern corporation as the unit of analysis, a and to respond positively science of energy and matter. viewpoint that distinguishes its contribution to the study to new opportunities that anthropology The science of organizational behavior. helped them overcome of human learned behavior. Medicine, the applied science of treating diseases to early setbacks. Knowing management The enhance an individual’s health and well-being, focuses on this, one venture capital- study of overseeing activities both physical and psychological health as well as industrial ist with whom the authors and supervising people in organizations. mental health.15 As modern care defeats acute diseases, have worked likes to ask an medical attention is shifting to more chronic diseases such executive who is seeking to medicine The applied as hypertension and to issues involved in occupational build a business to tell him science of healing or treating diseases to enhance an individual’s health and well-being.16 These trends have contributed about his or her greatest health and well-being. to the growth of corporate wellness programs such as failure. He wants to hear CHAPTER 1: Organizational Behavior and Opportunity 5 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  HOT TREND Habits Can Be Good to Have P roduct packaging often focuses on developing novel, innovative, and markedly distinc- tive designs, shapes, and colors that “stand out” for the consumer. This may actually be counterproductive given how people are hard wired. Our brains are designed, especially in stressful or dangerous times, to reduce information intake and increase control. The brain is not designed to be open and creative when it is in a hurry. This has important consequences in how people form and maintain habits, which are behaviorally efficient and demand less energy. So, with repeated responses to familiar and similar objects, the brain requires less information and uses less power to get to the same recognition level or conclusion that would be required if the habit maxim ibragimov/Shutterstock.com were not formed and in place. Thus, implicit memory has power and helps the brain lead to recognition efficiency. This level of cognitive and behavioral efficiency may become compromised in new and changed environments and circumstances. SOURCE: S. Berinato, “The Science: How Habit Beats Novelty,” Harvard Business Review, January–February 2017, pp. 60–61. how the executive responded to the failure and what he Today, the corporation is the dominant organizational or she learned from the experience. form for much of the Western world, but other organi- So change carries both the risk of failure and the zational forms have dominated other societies. Religious opportunity for success; our behavior often determines the organizations, such as the temple corporations of ancient outcome. Moreover, success can come through the accu- Mesopotamia and the churches in colonial America, can mulation of small wins and through the use of micropro- often dominate society.24 So can military organizations, cesses, as has been found with middle managers engaged such as the clans of the Scottish Highlands and the regional in institutional change. Finally, companies can improve armies of the People’s Republic of China.25 All of these their performance in the emerging China market during societies are woven together by family organizations, which uncertain times and economic transitions by engendering themselves may vary from nuclear and extended families to trust between the business and state bureaucrats.23,23a small, collective communities.26 The purpose and structure of religious, military, and family organizational forms var- ies, but people within different organizations often behave 1-3 THE ORGANIZATIONAL CONTEXT alike. In fact, early discoveries about power and leadership in work organizations were remarkably similar to findings A complete understanding of organizational behav- about power and leadership within families.27 ior requires an understanding of both human behavior Because organizations are so varied in function, and of the organizational context—that is, the specific manufacturing products such as aircraft components setting—within which behavior is acted out. or delivering services such as money management, for example, we must first understand the open system com- 1-3a Organizations as Open Systems ponents of an organization and its task environment in Just as two different perspectives offer complementary order to see how the organization performs. explanations for human behavior, two views shape com- Accordingly, Katz and Kahn in one study, and Leavitt plementary explanations of organizations. Organizations in another, established open system frameworks for are open systems of interacting components, including understanding organizations.28 The four major internal people, tasks, technol- components are task, people, technology, and structure. task An organization’s mission, ogy, and structure. These These four components, along with the organization’s purpose, or goal for existing. internal components also inputs, outputs, and key elements in the task environ- interact with components ment, are depicted in Figure 1.1. The task of the people The human resources of an organization. in the organization’s task organization is its mission, purpose, or goal for existing. environment. The people are the human resources of the organization. 6 PART ONE: Introduction Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  FIGURE 1.1 AN OPEN-SYSTEMS VIEW OF ORGANIZATION Task environment: Competitors Unions Regulatory agencies Clients Structure Inputs: Outputs: Material Task Technology Products Capital Services Human People (Actors) Organizational boundary SOURCE: Based on H. Leavitt, “Applied Organizational Change in Industry: Structural, Technological, and Humanistic Approaches,” in J. G. March, ed., Handbook of Organizations (Chicago: Rand McNally, 1965), 1145. Reprinted by permission of James G. March. The technology is the wide range of tools, knowledge, to include corporate social responsibility. Customers and/or techniques used to transform inputs into outputs. expect these organizations to be good corporate citi- The structure involves the systems of communication, zens, creating social value as well as financial wealth for authority and roles, and workflow. their shareholders.31 Organizational transparency con- In addition to these major internal components, the tributes to trust in organization–stakeholder relation- organization as a system also has an external task envi- ships, which is good for the health and well-being of ronment composed of different constituents such as the organization.31a suppliers, customers, and federal regulators. Thompson describes the task environment as that element of the environment related to the organization’s degree of goal attainment, or its basic task.29 A number of organizations 1-4 THE FORMAL AND INFORMAL are using or considering the use of Twitter as a way of ORGANIZATION networking into elements of their task environments.30 For example, NASA uses Twitter to update followers on The open systems view of organizations suggests that the status of upcoming shuttle flights. they are designed like clockwork (recall the clockwork The organization system works by taking inputs, metaphor described at the beginning of this chapter), converting them into throughputs, and delivering out- with a neat, precise, puts to its task environment. Inputs are the human, interrelated func- informational, material, and financial resources used tioning. The formal technology The tools, knowledge, and/or techniques used to transform by the organization. Throughputs are the materials organization is the inputs into outputs. and resources as they are transformed by the organiza- official, legitimate, and tion’s technology component. Once the transformation most visible part of structure The systems of communication, authority and roles, is complete, they become outputs for customers, con- the organization, and and workflow. sumers, and clients. The actions of suppliers, customers, it enables people to regulators, and other elements of the task environment think of organizations formal organization The official, legitimate, and most visible part of the affect the organization and the behavior of people at in logical and rational system. work. The role of modern corporations has expanded ways. The snake pit CHAPTER 1: Organizational Behavior and Opportunity 7 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  FAST FACT Google’s Racial Makeup…Is Up P eople are at the heart of Google’s suc- cess. The company has searched its soul to move minority workers from 37 percent of their workforce in 2012 to 43.1 percent in 2016. Google does employ more men (70.8 percent) than the U.S. average (53.2 percent) and fewer women (29.2 percent) than the U.S. average (46.8 percent). Google is way above the national ©Artishok / shutterstock 125877440 average for Asian employees (33.5 percent vs. 5.2 percent) while being behind the national average for White (56.9 percent vs. 78.7 percent), lightpoet/123RF Latino (5.2 percent vs. 16.6 percent), and Black (2.4 percent vs. 12.3 percent) employees. But, all their minority trend lines from 2012 to 2016 are positive (up). SOURCE: E. McGirt, “Google Searches Its Soul,” Fortune, Feb. 1, 2017, p. 54. metaphor mentioned earlier originates from the study FIGURE 1.2 FORMAL AND INFORMAL ORGANIZATION of the informal organization, which is unofficial and less visible. The Hawthorne studies, conducted during the 1920s and 1930s, first suggested the importance of the informal elements. During the so-called interview study, Formal organization (overt) Goals and objectives the third of the four Hawthorne studies, the researchers Policies and procedures Job descriptions began to fully appreciate the informal elements of the Financial resources Authority structure Hawthorne Works as an organization.32 The formal and Communication channels Products and services informal elements of the organization are depicted in Figure 1.2. Social surface Because the formal and informal elements of an orga- nization can sometimes conflict, we must understand both. Informal organization (covert) Such conflicts erupted in many organizations during the Beliefs and assumptions Perceptions and attitudes early years of the twentieth century and were embodied Values Feelings (fear, joy, anger, trust, and hope) in the union–management strife of that era. Sometimes Group norms Informal leaders these formal–informal conflicts escalated into violence. For example, supervisors informal organization The at the Homestead Works of unofficial and less visible part of U.S. Steel during the 1920s the system. were issued pistols “just in Hawthorne studies Studies case” they felt it necessary company provided financial backing for employees’ conducted during the 1920s to shoot unruly, danger­ neighborhood communities, such as Meadowbrook in ­ and 1930s that suggested the ous steelworkers. However, Rochester, New York. Kodak’s concern for employees and importance of the informal organization. during that same era, the attention to informal issues made unions unnecessary at progressive Eastman Kodak the company. 8 PART ONE: Introduction Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  decision making, creativity, turnover, teamwork, negotia- tion, and leadership.34 1-5 DIVERSITY OF ORGANIZATIONS Monkey Business Images/Shutterstock.com Most attempts to explain or predict organizational behavior rely heavily on factors within the organization and give less weight to external environmental consider- ations.35 Yet organizational behavior always occurs in the context of a specific organizational setting, so students can benefit from being sensitive to that industrial context and from developing an appreciation for the diversity of The open systems view of an organization various organizations.36 suggests that it is designed and run like Large and small organizations operate in each sec- clockwork. tor of the economy: the private, manufacturing, ser- vice, government, and nonprofit sectors. In the private sector are a great variety of organizations that play an The informal elements of the organization are often important role in the economy. The manufacturing points of diagnostic and intervention activities in organi- sector includes the production of basic materials, such zational development, though the formal elements must as steel, and the production of finished products, such always be considered because they provide the context as automobiles and electronic equipment. The service for the informal.33 It is the informal elements involving sector includes transportation, financial services, insur- people’s feelings, thoughts, and attitudes about their ance, and retail sales. The government sectors, which work that most affect their behavior and performance, provide essential infrastructure, and nonprofit organiza- but individual behavior plays out in the context of both tions are important to our collective well-being because the formal and informal elements of the system, becom- they meet needs that other sectors do not address. For ing, in the process, organizational behavior. Employees’ example, in France, the not-for-profit Action Tank has moods, emotions, and dispositions all influence criti- discovered a solution for poor consumers who find cal organizational outcomes such as job performance, access to even low-cost products and services out of their reach.37 Hundreds of small, medium-sized, and large organizations contribute to the economic health and human welfare of the United States. Throughout this book, we provide examples from a variety of organiza- FAST FACT tions to help you develop a greater appreciation for your own organization and for others in the diverse world of private business enterprises and nonprofit organizations. The Cost of Ignoring Older Employees W hen companies do not pay attention to older employees, they pay a price. This conclusion was based on a study 1-6 CHANGE CREATES of 666 Australian workers between the ages of 45 and 75. In workplaces that were most unfavorable to older employees, OPPORTUNITIES engagement levels were 19 to 20 percent lower than those Global competition, which is a leading force driving whose workplaces were most helpful. This has financial impli- change at work, has increased significantly during cations because organizations lose money when workers are the past few decades, especially in industries such as disengaged. banking, finance, and air transportation. As a result, SOURCE: R. Feintzeig, “Companies Suffer When They Ignore Older Employees, Study change has accelerated and, with it, both opportuni- Says; When workplaces are less friendly to that group, engagement among veteran workers drops,” Wall Street Journal, 3 Jan 2017. ties and risks. Corporate competition creates perfor- mance and cost pressures, changes that have a ripple CHAPTER 1: Organizational Behavior and Opportunity 9 Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.  the coffee industry has been a key stimulus for both Car- Winning in a competitive ibou Coffee and Starbucks as they innovate and improve. Too much change, however, leads to chaos, and too industry can be a transient little change leads to stagnation. Also, winning in a com- petitive industry can be a transient victory; staying ahead victory; staying ahead of the competition requires constant change. of the competition requires 1-6a Global Competition in Business constant change. Managers and executives in the United States face radi- cal change in response to increased global competition. According to noted economist Lester Thurow, this com- effect on people and their behavior at work. Although petition is characterized by intense rivalry between the one such risk for employees is the marginalization of United States, Japan, and Europe in core industries.40 As a part-time professionals, good management practice result, all categories of employees face increased pressure can ensure their integration.38 Furthermore, although to be productive and to add value to the firm. Moreover, competition may lead to downsizing and restructuring, corporate warfare and competition make employment it also provides the opportunit